Chevron Posts Steepest Loss in a Decade After Gas Writedown

(Bloomberg) -- Chevron Corp. posted its biggest loss in a decade after it wrote down the value of North American natural gas fields and returns plunged from overseas refining and oil production.

• Most of the fourth-quarter loss stemmed from $10.4 billion in previously announced impairments. Profit from the company’s international downstream and upstream divisions also sank.

Key Insights

• Chevron Chief Executive Officer Mike Wirth is differentiating the oil explorer from some of its biggest rivals by funding heftier shareholder payouts and buybacks with cash rather than borrowed money.
  • Royal Dutch Shell Plc rowed back on buyback plans and Exxon is facing another quarter of resorting to debt or asset sales to cover dividends.
• Investors are keenly interested in whether the expansion of one of Chevron’s marquee fields in Central Asia will face additional cost increases.

Market Reaction

• Chevron fell as much as 1.4% in pre-market trading in New York.

Get More

• Read Chevron’s earnings statement here.

To contact the reporter on this story: Kevin Crowley in Houston at kcrowley1@bloomberg.net

To contact the editors responsible for this story: Simon Casey at scasey4@bloomberg.net, Joe Carroll, Christine Buurma

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